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VANCOUVER,
March 7, 2013 /CNW/ - Lignol Energy
Corporation (TSXV: LEC) ("LEC" or the "Company"), a leading
technology company in the advanced biofuels and renewable chemicals
sector, is pleased to announce that, further to the private
placement of $4.5 million which
included 7,666,667 subscription receipts (the "Subscription
Receipts") issued to Difference Capital Funding Inc. ("DCF") as
described in LEC's press release dated December 17, 2012, the subscription proceeds of
$1,150,000 previously held in escrow
with respect to the Subscription Receipts have been released to the
Company. Concurrently, each Subscription Receipt has been converted
into one unit of the Company (each a "Unit"), each Unit consisting
of one common share of the Company (a "Common Share") and one half
of one warrant, each whole warrant entitling the holder to purchase
one additional Common Share at a price of $0.20 per Common Share prior to December 17, 2014.
Following this conversion DCF will own
approximately 25.6% on a fully diluted basis of the outstanding
shares of LEC. As part of the conditions to the release of the
escrowed subscription proceeds, the shareholders of the Company, at
the special meeting of the shareholders held on March 6, 2013 (the "Meeting"), approved (i) the
creation of DCF as a "Control Person" as defined in the TSX Venture
Exchange Corporate Finance Manual; and (ii) the waiver of the
application of the shareholder rights plan agreement between the
Company and Computershare Corporation Trust Company of Canada dated July 8,
2010 (the "Rights Plan") with respect to DCF being the
holder of 20% or more of the outstanding Common Shares.
The shareholders of the Company at the Meeting
also approved the termination of the Rights Plan and redeemed all
outstanding rights issued thereunder effective March 6, 2013. Of shareholders who voted at the
meeting in person or by proxy, 98.6% were in favour of terminating
the Rights Plan.
Shareholders who wish to receive their nominal
payment of $0.0001 per right (the
"Redemption Price") must complete the Payment Form which was mailed
to shareholders, and return it to Computershare Trust Company of
Canada at 2nd Floor, 510 Burrard
Street, Vancouver, BC V6C 3B9. The
entitlement of any holder will be rounded up to the nearest whole
cent and the Company shall not be obligated to make a payment of
the Redemption Price to any holders of Rights unless such holder is
entitled to receive at least $1.00 in
respect of all Rights held by such holder.
About Lignol Energy Corporation
("LEC")
LEC (TSXV: LEC) currently owns 100% of the
issued and voting shares of Lignol Innovations Ltd. ("LIL") and is
one of the largest shareholders of Australian Renewable Fuels Ltd
(ASX: ARW) ("ARW"). LEC also intends to invest in, or otherwise
obtain, equity interests in energy related projects which have
synergies with the Company and which have the potential to generate
short term cash flow.
LIL is a leading technology company in the
advanced biofuels and renewable chemicals sector undertaking the
development of biorefining technologies for the production of
advanced biofuels, including fuel-grade ethanol, and other
renewable chemicals from non-food cellulosic biomass feedstocks.
LIL's modified solvent based pre-treatment technology facilitates
the rapid, high-yield conversion of cellulose to ethanol and the
production of value-added biochemical co-products, including high
purity HP-LTM lignin. HP-LTM lignin
represents a new class of high purity lignin extractives (and their
subsequent derivatives) which can be engineered to meet the
chemical properties and functional requirements of a range of
industrial applications that until now has not been possible with
traditional lignin by-products generated from other processes. LIL
is executing on its development plan through strategic partnerships
to further develop and integrate its core technologies on a
commercial scale. For more information please visit Lignol's
website at www.lignol.ca.
ARW is the largest biodiesel producer in
Australia owning three plants with
a total nameplate capacity of 150 million litres per annum. ARW's
three plants were built at an aggregate cost of approximately
A$150 million. ARW has made
significant changes in recent years to become a cost effective
producer of high quality biodiesel to address growing biofuel
demand in the Australian market. ARW has recently announced
proposed transactions to raise a combined A$12.3 million in cash through a placement and an
entitlement offer, in which LEC intends to participate. More
information on ARW can be found at their website at
www.arfuels.com.au.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Caution concerning forward-looking
statements:
Certain statements contained in this document may constitute
forward-looking information within the meaning of applicable
securities laws. Such forward-looking statements or information
include, without limitation, statements or information about
the conversion of DCF's units into shares and the future exercise
of DCF's warrants, the redemption of the rights pursuant to the
Rights Plan, the success of the proposed transaction announced by
ARW to raise A$12.3 million and the
resulting change to the LEC equity interest in ARW, our ability to
complete the acquisition of additional shares of ARW, LEC's ability
to invest in, or otherwise obtain, equity interests in energy
related projects which have synergies with the Company and which
have the potential to generate short term cash flow, LEC's ability
to continue as a going concern and to raise additional financing to
fund the operations of LEC and LIL, the development status of LIL's
fully integrated pilot scale biorefinery in Burnaby, British Columbia, the planning and
development of a commercial plant, LIL's ability to complete
project deliverables which are funded in part by government
agencies, obtaining strategic partnership investments and
government funding for initial commercial projects. Often, but not
always, forward looking statements or information can be identified
by the use of words such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes" or variations of such words and phrases or words and
phrases that state or indicate that certain actions, events or
results "may", "could", "would", "might" or "will" be taken, occur
or be achieved.
Such statements or information reflect LEC's
current views with respect to future events and are subject to
certain risks, uncertainties and assumptions including, without
limitation, our ability to establish the validity of Lignol's
technology at the fully integrated biorefinery pilot plant scale,
LIL's ability to satisfy the conditions of existing government
grants and to obtain new additional grants, our ability to continue
to finance our operations and to finance and complete the
development of a commercial project, LIL's ability to work with
Novozymes to produce cellulosic ethanol at production costs
competitive with gasoline and corn ethanol, LIL's ability to
develop products and to obtain off-take agreements, LIL's ability
to obtain requisite regulatory approvals and its ability to enter
into agreements with strategic partners on terms acceptable to us,
the inability of LEC to influence the strategy, operations and
financial performance of ARW, the reliance on publically available
information of ARW in the Company's evaluation of its acquisition
of shares in ARW, the potential inability to divest the ARW
ordinary shares due to modest trading volumes, the cost of future
ARW capital investment, the fluctuation of biodiesel and feedstock
prices on ARW, the effect on ARW of changes in government policy
relating to the environment, and incentives for renewable fuels,
and the ability of ARW to generate short term cash flow and pay
dividends. Many factors could cause LEC's actual results,
performance or achievements to be materially different from any
future results, performance or achievements that may be expressed
or implied by such forward-looking statements or information,
including among other things, the technological challenges that
remain to be surpassed in obtaining the necessary operating data
from LIL's fully integrated biorefinery pilot plant that is
required prior to completing the next scale-up of the technology,
financial market conditions which will impact our ability to
finance our operations and to finance the construction and
operation of a commercial plant, the price of gasoline and demand
for ethanol, the market pricing and demand for renewable chemicals,
risks relating to the protection of LIL's core technology from
infringement and those risk factors which are discussed elsewhere
in documents that LEC files from time to time with securities
regulatory authorities. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the
forward-looking statements or information prove incorrect, actual
results may vary materially from those described herein as intended
planned, anticipated, believed, estimated or expected. Except as
required by law, the Company expressly disclaims any intention or
obligation to update or revise any forward looking statements and
information whether as a result of new information, future events
or otherwise. All written and oral forward-looking statements and
information attributable to us or persons acting on our behalf are
expressly qualified in their entirety by the foregoing cautionary
statements.
SOURCE Lignol Energy Corporation